(11) BUSINESS AND CREDIT CONCENTRATIONS

     The Company generates the majority of its sales in the United States; however, several of its products are sold into various foreign countries, which subjects the Company to the risks of doing business abroad. In addition, the Company operates in the footwear industry, which is impacted by the general economy, and its business depends on the general economic environment and levels of consumer spending. Changes in the marketplace may significantly affect management’s estimates and the Company’s performance. Management performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable, which generally do not require collateral from customers, were equal to $163.1 million and $164.4 million before allowances for bad debts, sales returns and chargebacks at June 30, 2011 and December 31, 2010, respectively. Foreign accounts receivable, which in some cases are collateralized by letters of credit, were equal to $135.8 million and $121.4 million before allowance for bad debts, sales returns and chargebacks at June 30, 2011 and December 31, 2010, respectively. The Company’s credit losses attributable to write-offs for the three months ended June 30, 2011 and 2010 were $1.8 million and $0.2 million, respectively. The Company’s credit losses attributable to write-offs for the six months ended June 30, 2011 and 2010 were $2.5 million and $1.6 million, respectively.

     Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property and equipment, and other assets. Net assets held outside the United States were $356.8 million and $322.0 million at June 30, 2011 and December 31, 2010, respectively.

     The Company’s net sales to its five largest customers accounted for approximately 25.2% and 31.3% of total net sales for the three months ended June 30, 2011 and 2010, respectively. The Company’s net sales to its five largest customers accounted for approximately 20.1% and 28.2% of total net sales for the six months ended June 30, 2011 and 2010, respectively. No customer accounted for more than 10% of our net sales during the three months ended June 30, 2011. One customer accounted for 10.9% of our net sales during the three months ended June 30, 2010. No customer accounted for more than 10% of our net sales during the six months ended June 30, 2011 and 2010, respectively. No customer accounted for more than 10% of our outstanding accounts receivable balance at June 30, 2011 and December 31, 2010, respectively.

     The Company’s top five manufacturers produced the following for the three and six months ended June 30, 2011 and 2010, respectively:

		Three Months Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
Manufacturer #1			31.7	%			36.8	%			30.8	%			34.6	%
Manufacturer #2			11.2	%			14.2	%			11.4	%			13.3	%
Manufacturer #3			7.6	%			9.4	%			8.6	%			10.1	%
Manufacturer #4			6.8	%			8.1	%			6.7	%			8.6	%
Manufacturer #5			6.3	%			4.6	%			6.3	%			4.7	%
			63.6	%			73.1	%			63.8	%			71.3	%

     The majority of the Company’s products are produced in China. The Company’s operations are subject to the customary risks of doing business abroad, including, but not limited to, currency fluctuations and revaluations, custom duties and related fees, various import controls and other monetary barriers, restrictions on the transfer of funds, labor unrest and strikes and, in certain parts of the world, political instability. The Company believes it has acted to reduce these risks by diversifying manufacturing among various factories. To date, these business risks have not had a material adverse impact on the Company’s operations.